Cybersecurity demands of SMBs have become both a major risk and revenue opportunity to managed service providers (MSPs).
MSPs are at risk of losing their SMB clients if they don’t provide competitive, comprehensive solutions to their clients, according to Vanson Bourne’s research.
Nearly nine in ten (89 percent) SMBs surveyed would consider hiring a new MSP if they offered the right cybersecurity solution, and nearly 1 in 4 SMBs (24 percent) has already changed MSPs in the aftermath of a cyberattack.
To make matters more challenging for MSPs, the report highlights that clients will hold providers accountable for security issues even if their MSP is not currently providing them with cybersecurity solutions. Three in four SMBs who do not currently outsource cybersecurity would still hold their provider accountable in the event of a cyber attack.
MSPs that attempt to compete on price are likely to find that this will not be enough to retain clients that are concerned about cybersecurity, as SMBs planning to change providers are willing to pay 24 percent more on average for the right cybersecurity offering. Nearly half of all SMBs surveyed in the US (47 percent) would pay at least 20 percent more for the right cybersecurity solution from a new provider.
“We have seen first-hand that the number one reason MSPs lose business today is over concerns about cybersecurity, and this data now proves it,” said Michael George, CEO, Continuum.
“Providers across North America and Europe should heed the warning presented by these findings. Businesses expect to be protected by their MSPs, and not only will they jump ship to providers that offer a better cybersecurity solution, they will pay more to do so.”
While this research highlights the risks for MSPs who don’t meet the security demands of SMBs, it also paints an optimistic picture for those MSPs who do offer and sell effective cybersecurity services. SMBs recognize the need for cybersecurity, and are ready to work with and invest more with MSPs to get the right levels of protection.
77 percent of SMBs anticipate that at least half of their cybersecurity needs will be outsourced in five years’ time, and 78 percent are planning to invest more in cybersecurity in the next 12 months. What’s more, SMBs state they are willing to pay 27 percent more, on average, than they currently pay for the right cyber security offering.
“SMBs are not just looking for cybersecurity protections, they are ready to invest more to protect their businesses,” said Brian Downey, Senior Director, Security Product Management at Continuum.
“It’s clear from today’s report that when MSPs get cybersecurity right, they stand to not only win business from providers that don’t, but also increase their revenue streams from their SMB clients and have a better chance of retaining their existing client base. If MSPs can deliver the right cybersecurity solutions to their end-clients, they will hold the competitive advantage in the SMB market.”